Startertask:

Apple are forever changing and updating their products, for example the recent launch of the iphone5. But how do they ensure that customers are always being provided with what they want?Discuss with a partner and jot down some notes in preparation for class discussion.

Characteristics of effective marketing

Learning objectives:

£I can explain the terms 'target market' and 'market segment' (F - C)££ I have analysed the benefits to a firm of taking a market-orientated approach to marketing (C - B)£££ I am am able to evaluate the effectivness of a firms marketing strategy ( B - A)

When marketing a product firms will look to conduct market research such as surveys, but do they want to canvass the views of everyone?

To succees in marketing you need to know and understand the customers within your target market: what do they really want from your product? The satisfaction of using/having the product, or the satisfaction of showing it off to friends? What are their interests and lifestyle?Having a clear idea of the age, sex, personality and lifestyle of the target market enables the business to do the following things:> Focused market research> Focused advertising

A market segmentis a group of consumers within a market with similar wants and needs.In practice consumers preferances vary greatly. Firms that market their products effectivly in this situation produce a range of products, each targeted at specific market segments.

Think...

Pair...

Share!!!

Why are BskyB considered to be so successful when it comes to market segmentation?

Market orientated marketing

Effective marketing is usually based around an approach that is market-orientated rather than product orientated.In a market orientated business, managers take into account the needs of the consumer before making any decision: they put the customer at the heart of the decision-making process.

The alternative approach

Some firms still rely on a production-orientated approach to markeing, i.e. doing what the firm does best (e.g. internal efficiencies) before taking into account consumer preferences.> The hard sell> Cutting costs

Why is it important to have a coherent brand image?

Apple's advertising, evidence of there expertise at providing a coherent brand image

What was Jack Welch talking about & what does it mean?

"Short-termist marketing is ineffective marketing" - Jack W

Answering exam questions

Issues for analysis

> A weak exam answer will present marketing as a simple set of the 4Ps> Effective marketing is remarkably difficult, even for the biggest of companies> Even Coca-cola has got it wrong in the past (New Coke, Dasani water, Coke Blak)> Is it difficult because it is based on judgements about the future> Achieveing success depends on devising a genuinely new type of product that meets an actual consumer need or desire.

Evaluating effective marketing

> To judge a firms marketing plans requires a full understanding of the market, therefore you must carefully study the infomation presented to you in the case study.> For example a question on Cudburys might lead to very different answers to the same question asked of Nestle> Good judgement comes from good application to the market and to the company

Individual questions

1. What is the benefit of a firm having a coherent brand image? (2)2. Why would it be advisable for a firm trying to increase customer retention not to cut costs by using cheaper raw materials? (4)3. Explain how market segmentation has helped companies such as BskyB to improve their profitability. (6)